Kelly Services Inc

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KELYA : NASDAQ : Services
$21.99 | %
Today's Range: 21.78 - 22.0
Avg. Daily Volume: 101400.0
02/17/17 - 4:00 PM ET

Financial Analysis


KELLY SERVICES INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. KELLY SERVICES INC has strong liquidity. Currently, the Quick Ratio is 1.52 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 13.22% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)1304.41461.6
EBITDA ($mil)26.932.2
EBIT ($mil)21.626.5
Net Income ($mil)21.634.2


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)29.642.2
Total Assets ($mil)2029.31939.6
Total Debt ($mil)0.055.5
Equity ($mil)1013.8895.4


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin17.8917.46
EBITDA Margin2.062.2
Operating Margin1.661.81
Sales Turnover2.62.85
Return on Assets6.042.77
Return on Equity12.096.0
Debt Q4 FY16 Q4 FY15
Current Ratio1.581.5
Debt/Capital0.00.06
Interest Expense0.01.1
Interest Coverage0.024.09


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)38.238.0
Div / share0.080.05
EPS0.550.88
Book value / share26.5423.56
Institutional Own % n/a n/a
Avg Daily Volume105310.093010.0

Valuation


BUY. KELLY SERVICES INC's P/E ratio indicates a significant discount compared to an average of 37.77 for the Professional Services industry and a significant discount compared to the S&P 500 average of 25.91. For additional comparison, its price-to-book ratio of 0.80 indicates a significant discount versus the S&P 500 average of 2.89 and a significant discount versus the industry average of 8.08. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, KELLY SERVICES INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KELYA 6.81 Peers 37.77   KELYA 21.42 Peers 19.09

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KELYA is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

KELYA is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KELYA 12.92 Peers 20.39   KELYA NM Peers 2.25

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

KELYA is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

KELYA's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KELYA 0.80 Peers 8.08   KELYA 125.17 Peers 60.50

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KELYA is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

KELYA is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KELYA 0.15 Peers 3.75   KELYA -4.38 Peers 34.93

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

KELYA is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

KELYA significantly trails its peers on the basis of sales growth

 

 

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